Individuals working collectively to protect one another against changes in fortune is as old as civilisation. People throughout the world and throughout history have developed different organisations and structures, such as the Roman colleges and Anglo Saxon gilds, to guarantee mutual protection in wealth and adversity.
Motor insurance in the UK is believed to date back to 1896, with policies based on those previously used for horse-drawn vehicles. The first motor insurance based on variable premiums depending on the horse power, age and type of vehicle was introduced by the Red Cross Indemnity Insurance Company in 1906.
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